Delay costs BNFL £21m

A lengthy delay in the Government giving approval for British Nuclear Fuels' controversial mixed oxide reprocessing plant at Sellafield cost the State-owned company £21 million last year.

John Prescott finally gave the go-ahead in July for the £300 million plant, which was built in 1997 but has been mothballed since. It is now being commissioned and is expected to be fully up and running by the end of next year.

The cost was one of several one-off losses that kept a lid on an otherwise strong profit performance from BNFL, which is due to be partly privatised before the end of the current Parliament.

The other costs included £70 million for the integration of the Magnox Electric generation plants transferred to BNFL last year, the £34 million cost of a blocked pipe at the Thorp reprocessing plant and a £20 million writedown.

The costs were more than offset by £165 million of savings, and profits before interest and tax for the year to end-March rose 47% to £47 million.

Chief executive John Taylor said: 'The year has shown our resilience as a company in being able to surmount operational challenges, while at the same time we have increased profits before tax and repositioned the business for the future.'

The Government has appointed CSFB as its adviser to the proposed 49% sell-off of BNFL, which is expected to raise £1.5 billion for the Treasury.